How to work out who gets what when a relationship breaks down
The Property (Relationships) Act 1976 provides for how property of married couples, civil union partners and de facto couples is divided when a relationship ends (including by breakdown or death).
When a relationship breaks down, relationship property disputes can be settled in two ways - either by agreement between the parties or through the Family Court.
Settling relationship property matters by agreement means the Family Court is not involved and parties come to an agreement themselves with or without the assistance from lawyers. Settling by agreement is far more effective in terms of time and money than the Court process. For these reasons I just about always encourage my clients to use this method if they can.
This is part 1 in a 3 part series to help explain the steps involved in reaching settlement and give you some tips to move forward.
4 STEPS TO SETTLEMENT
There are four key steps involved in settlement:
Step 1 – Disclosure / Information gathering
This step allows both parties to establish the total relationship property pool and create a list of assets and liabilities.
When you think about it, it makes sense that meaningful negotiation can't start unless both parties know what they are dealing with and have a full understanding of the details of what is in their relationship pool. This includes knowing what property is considered relationship property and what the value of the relationship property is. It can sometimes be hard to get the ball rolling on Step 1 and people tend to want to skip it thinking that it will just cause trouble.
From a legal perspective, without full disclosure, there is a real risk that whatever the parties agree to in negotiations will be challenged and set aside by the Court in the future. This could occur for example if it is later discovered that one party had hidden financial information (non-disclosure). Non-disclosure can lead to further legal costs and delays for both parties.
How to start the ‘disclosure’ process?
It is often best to confirm the start of this process in writing with one party requesting from the other party financial information or other details in respect of relationship property. You can do this using a lawyer, with the help of a lawyer checking your letter or on your own.
What “relationship property” covers
Relationship property covers things of financial value that were gained during the relationship. It can include:
These issues are explored in Part 2 of this series, so if you would like to know more, subscribe by clicking on the RSS Feed on the right.
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